Which government jobs have pensions in India?

In the last century, a government job used to mean job and financial security for life. A safe job and then pension till you die. Pension used to be one of the top few advantages of government jobs, as compared to private jobs.

However, things changed drastically after 2003 when Indian central government decided to do away with pensions. People joining government jobs on or after 1st January, 2004 will not get pension once they retire – it’s true for most of the government jobs.

Though government employees even now can opt for contributory kind of pension scheme, where they contribute some amount to their pension fund and the government also contributes some. One such contributory pension scheme is National Pension System (NPS), managed by Pension Fund Regulatory and Development Authority (PFRDA). Though they are free to get some other private sector pension scheme too.

But even today there are a few government jobs where you will get non-contributory kind of pension (once you retire) even if you join now.

Table of Contents

• Why government stopped pension in India?
• Indian government jobs with Pension
• Is pension available for state government employees?

But, let’s first see why pension scheme for government employees was removed. You may skip this part if you want.

Why government stopped pension in India?

In the 1990s, India suffered a lot on the financial front. We were under a lot of international debt, and International Monetary Fund (IMF) arm-twisted us to do a lot of reforms on financial and administrative fronts. Role of state was reduced, and policies of liberalization, privatization and globalization were adopted.

Even in early 2000s the growth rate of India was slow. The BJP government at the centre decided to do away with the pension scheme mainly for two reasons:

• To reduce the added pressure of pension payments from the public exchequer (in times to come).
• In the spirit of privatization, removal of pension from government jobs made private jobs and businesses much more attractive. Many bright young minds started thinking about joining corporate world, and opening their own businesses, giving a further boost to Indian economy.
• It allowed the government to increase the salary of government employees. Earlier, the salaries in private sector jobs were much higher than in government sector.

Note

Bhartiya Janta Party (BJP) is considered a central-right party when it comes to economy, i.e. it always promotes private jobs, businesses and entrepreneurs, and believes in minimal role of the state in financial ventures.

Indian government jobs with Pension

The main armed forces of India still offer pensions to new joinees, just like grand old days. So, if you join army, air force, or navy, then you need not think about opting for contributory National Pension System (NPS).

You will get pension by the Indian government after you retire. You need not contribute anything. This is true for both officers and jawans, air force officers and airmen.

Note

Unlike other government employees, Army, Navy and Air Force personnel will get non-contributory kind of pension, i.e. they need not contribute anything to their pension fund. Once they retire, the government will pay all of their pension amount from its own pocket.

I came to know about it in 2009, when I cleared Air Force SSB in Varanasi, and was selected as Flight Lieutenant (Technical Branch). I was at Air Force compound at Delhi for my medical tests, and I had a discussion with an officer there. He told me that it’s one of the very few government jobs left that still offers pensions once you retire. That was music to my ears!

However, there are a few constraints even here:

• To be eligible for pension, an officer has to serve atleast 20 years and a jawan has to serve atleast 14 years.
• Short Service Commission officers won’t get any pension.

Note

Para military forces (BSF, CISF, CRPF, ITBP, NSG, SSB and Assam Rifles), comes under the contributory/hybrid pension scheme. So, when it comes to pension, there is a difference between army/air force/navy and other armed forces like BSF, CISF, CRPF, etc.

Though government, at various occasions, has hinted that the old non-contributory pension scheme will be made available to paramilitary forces too. However, it has not been implemented. A case is being fought in the Supreme Court of India for this cause.

Is pension available for state government employees?

State Governments of India often follow the footsteps of the central government, and so most of them have adopted the new pension scheme for their employees. That is, the contributory pension scheme of National Pension System (NPS).

However, some states may still be continuing the old pension system for some of their jobs. You will need to do some research for your respective state to find out about such jobs.